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Outsourcing is the most popular and globally accepted option for software companies and many other sector companies today to get development done. It is certainly due to its benefits that organizations are outsourcing software development to offshore/nearshore or sometimes onshore locations.

It is an old practice in Business to outsource those tasks, which if done in-house will be either too costly or very time consuming, or which the organization certainly does not want to. This is why in a time bound scenario outsourcing of software development is often chosen by companies many times instead of hiring required talent at their own site.

PROSPECT FOR IT OUTSOURCING IN 2019:

According to sources the global software outsourcing market value for 2018 stood at USD 85.6 billion. Though it is less compared to what it was in 2017 the chances of a better market value in 2019 seems very promising. Also, a report by MarketWatch says that according to a study by Computer Economics, large organizations have increased the percentage of their IT budgets spent on outsourcing from 6.3% to 8.7% this year.

Medium-sized companies too increased their budgets from 4.7% to 6.5%. Since outsourcing allows companies to save enormous costs and avoid challenges in finding the right candidates to work in-house and on to top it the expensive salaries which all companies might not be able to afford. The shortage of efficient software developers locally available adds more weightage and companies increasingly choose to outsource software development.


Global Outsourcing Market size 2018 sFig 1: Global Outsourcing Software Development Market by Statista

BENEFITS OF IT OUTSOURCING

Already documented in the previous released article of Global Sourcing Blog i.e. pliXos views on 3 R’s of Outsourcing: Reasons, Risks and Rewards the main benefits of outsourcing are

  1. Cost savings:
    Outsourcing cuts down the cost of recruiting, hiring, and training of desired IT Professionals in an organization. By outsourcing your software development you end up paying only for the services you need. For say, a company wants to build a software/application to keep accountability of their sales, purchase and bills receivable only. Now in this case hiring of software engineers does not guarantee the organization that they will get the desired results.

    The person may be excellent at coding but he may also have no prior experience to build a similar type of software. This is where outsourcing comes into play. pliXos B2B Marketplace here finds the best fit as customers can search for fitting verified service providers across globe depending on the project and cost fit. Also one can automate maximum processes in outsourcing by switching to SaaS tools that comes along with the marketplace.

  2. Time:
    Indeed time is money and everyone has the same number of hours in a day. In order to make the most of available time, organizations need to outsource the repetitive tasks or critical software development tasks to outside.

    pliXos tools like Tender Manager and Outsourcing Advisor allow organizations to automate the handling of tender documents required in outsourcing and plan strategic outsourcing decisions with different set of parameters.

  3. Value additions:
    Customers have become quite choosy in a way that they look for what value does the SW service providers add to their organization in terms of service, product development as add-ons.

    pliXos allows the customers to review their providers, e.g. based on their scientific provider ratings and select the best from the lot. Full transparency is what is maintained at pliXos allowing the customers and provider to be on same page while outsourcing.

We at pliXos (German based Global SW Outsourcing Consultant) take each client differently depending on their case analysis and requirement to provide best solutions through our popular B2B Marketplace and personal one to one service at a time.

We have successfully helped organizations to utilize full potential by assisting them in outsourcing of software development at geographically different locations and allow full control of project to prevent it from being lost.


Sources:

  1. MarketWatch
  2. Medium.com

Additional Read: pliXos views on 3 R’s of Outsourcing: Reasons, Risks and Rewards


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